In this paper factors that reflect the nature and underpinnings of Hong Kong Chinese family businesses (CFBs) are identified. CFBs tend to operate within transnational Chinese business networks (CBNs). Connections within these networks develop through personal relationships based on family, clans or extended family, and with third parties introduced through their personal relationships networks. Interactions within CBNs tend to be governed through the use of social controls, which include trust, reciprocity and respect for mutual obligations. It results in a molecular form of coordination where firms are able to respond rapidly to changes in international market forces. Within Hong Kong, firms from the West tend to find it difficult to interact within such socially constructed Chinese business markets. The Hong Kong Chinese, however, are experienced in dealing with firms from the West and appear V45willing to make allowances for the way they tend to deal. In particular, the Hong Kong Chinese have developed an appreciation for Westerners who display management skills, economic trust, and become involved in inter-firm adaptations.